Not to worry – you can delegate the authority to make health care decisions for you to a chosen loved one; however, you must execute a different type of document known as an “advance directive.” State law also governs which advanced directives are recognized within the state. In California, an advance directive known as a Medical Power of Attorney gives the person you name as your Agent the authority to make any and all health care decisions for you in accordance with your wishes, including … [Read more...] about What if I want my Agent to be able to make health care decisions for me?
Yes. Even a general Power of Attorney has limits. Exactly what those limits are will depend on the state; however, most states prohibit an Agent from self-dealing, making gifts in the Principal’s name, and making health care decisions for the Principal. … [Read more...] about Are there limits to an Agent’s authority in a General Power of Attorney?
Although the authority granted in a Power of Attorney is well established by law, it is not uncommon for a third party to refuse to honor that authority nonetheless. A common reason for refusing to honor an Agent’s authority is claiming that the POA was executed too long ago. A third party may also question the authenticity of the document or refuse to honor a POA unless it is created using their form. Enacted in 2017, the California Durable Power of Attorney Law dictates that when a POA is … [Read more...] about Can a third party refuse to honor a Power of Attorney?
Both a general and a limited POA can be a springing POA. A springing POA has special language in it that causes the Agent’s authority to “spring” into action at a specific time or upon the occurrence of a specific event. For example, you might create a general POA that does not actually go into effect unless you have been missing for more than 48 hours or until you have been declared incapacitated by a physician. If the event occurs, your Agent’s authority “springs” into action. … [Read more...] about What is a “springing” Power of Attorney?
Historically, the authority granted to an Agent in a POA automatically terminated upon the death or incapacity of the Principal. The problem with that was that the possibility of becoming incapacitated has always been a common motivation for executing a POA in the first place. If your goal is to ensure that the person you name as your Agent has the authority to act on your behalf if you suffer a period of incapacity, but that authority automatically terminates when you become incapacitated, … [Read more...] about What does it mean to make a Power of Attorney “durable?”
A limited POA only grants to your Agent the limited, and specific, authority outlines in the POA. For example, you might grant an Agent the specific power of attorney to act on your behalf during the closing for the sale of your home because you have to be out of town on business. A limited POA is also frequently used by the parents of a minor child as a way to grant a caregiver the authority to consent to medical care for a child should an emergency arise while the parents are away. … [Read more...] about What is a Limited Power of Attorney?
A POA can be either general or limited. A general POA grants your Agent almost unlimited power to act on your behalf. This means that your Agent may be able to do things such as withdraw funds from your financial accounts, sell property and assets owned by you, and even enter into contracts in your name. Most states enforce some statutory restraints on an Agent even under a general Power of Attorney; however, if you execute a general POA you should assume that your Agent will have virtually … [Read more...] about What is a General Power of Attorney?
At its most basic, a Power of Attorney (POA) is a legal document that allows you (the “Principal”) to grant another person (the “Agent”) the authority to act on your behalf in legal matters and transactions. The type and extent of the legal authority you grant to an Agent in a POA depends on the type of Power of Attorney you execute. … [Read more...] about What is a Power of Attorney?
For small business owners that do not plan to pass the business down to the next generation, it is a good idea to plan ahead for the sale of the business in the event of your death or capacity. One option is to enter into a Buy-Sell agreement. A Buy-Sell agreement guarantees that you (or your loved ones) will receive the fair market value of your interest in the business in the event you, or your surviving loved ones, must sell it later. In essence, a Buy-Sell agreement is a binding agreement … [Read more...] about What is a Buy-Sell Agreement?
One popular method used to transfer ownership of your business from one generation to the next is to create a Family Limited Partnership (FLP). An FLP allows you to transfer your legal interest in the business to the next generation slowly, over time, while maintaining control over the day-to-day management of the operation until such time as you are ready to retire. In addition, you may be able to gain tax advantages by using an FLP to transfer interest in your business to future generations. … [Read more...] about What is a Family Limited Partnership?